Foreign investors drop stocks, govt securities in February

ABS-CBN News

Posted at Mar 17 2017 07:50 AM

MANILA - Foreign portfolio investments posted net outflows of $409 million in February, a reversal from net inflows recorded during the previous month, the Bangko Sentral ng Pilipinas said.

Registered foreign portfolio investments for the month declined by 14.5 percent from January to $981 million, the BSP said, citing concerns over US President Donald Trump's immigration curbs and the government's closure orders issued against several mines.

February inflows grew 8.2 percent from the same period last year while outflows rose 64.4 percent to $846 million due to profit-taking and withdrawals from investments in peso government securities, the bank said.

About 91.3 percent of investments registered during the month were in the stock exchange while 8.7 percent were in government securities, it said.

US President Donald Trump has closed off the US to some Muslim-majority nations as a security measure. Washington's envoy to Manila, Sung Kim, said this would not affect the Philippines.

Environment Secretary Gina Lopez ordered 28 mines closed or suspended for violating safety laws and proposed replacing them with "green economies" that promote eco-tourism.

Lopez said the mines benefit only the owners, who get most of revenues, leaving their host communities poor.

Residents in mine sites, she said, should be retooled to plant palay, corn, banana, bamboo, banana, cacao, corn, coconut and rubber and harness “bio char” waste while the government builds tourism infrastructure.

“I truly feel this is the only way we will get the country out of poverty, not to take out the money but to bring it there,” she said.